The echoes of demonetisation rang out in an NIA special court in the capital when it asked the probe agency to exchange the Rs 2.83 lakh in now-invalid currency seized from an alleged Islamic State (ISIS) recruit and keep the amount ready in legal tender.

Syed Mujahid approached the court through his counsel, MS Khan, seeking the return of his "hard-earned money and parents' savings" that the National Investigation Agency confiscated during searches at his Karnataka home in January 2016

"I allow this application with the direction to the chief investigating officer to keep the amount in the shape of Fixed Deposit Receipt (FDR) in the name of the court after changing the same from old currency to new currency in the wake of demonetisation initially for the period of one year, which shall be extended automatically on attaining maturity till further orders of the court," judge Amar Nath said.

The NIA court allowed Mujahid's plea after the federal investigation agency did not oppose the appeal and instead in its detailed reply before the judge supported the exchange of the old notes after keeping on record a photocopy of each demonetised bill before exchanging them with new ones. The agency said.

It seized a total of Rs 5.42 lakh in old banknotes from Mujahid and two others-Nafees Khan and Mudabbir Mushtaq Shaikh.

THE ARREST

The NIA arrested over a dozen suspects, including Mujahid, in raids at 12 locations in six cities across several states in January last year.

India has the world's third-largest Muslim population at nearly 170 million but only a handful of them have joined the West Asian group.

Mujahid told court that the amount seized included money from his fruit-selling business as well as the pension of his parents. He has been accused of arranging meetings in connivance with a few resident and non-resident Indians, and indulging in identification, radicalisation, recruitment and training for Islamic State.

Mujahid's parents were government servants- his father retired as a tehsildar while his mother was a school headmistress.

NEED THE MONEY FOR CHILDREN: SYED'S WIFE

Speaking to Mail Today, Syed's wife, Sumaiya, expressed satisfaction with the court order. "The money that was seized was kept as advance payment for his fruit-selling business. After my husband's arrest we had to close down the shop. I am managing my responsibilities with the pension amount we get for my in-laws. Without my husband, it has become extremely difficult to take care of my five children," she said.

The suspected ISIS operatives were arrested under several sections of the Unlawful Activities (Prevention) Act and Indian Penal Code (IPC).

The action came after the NIA registered a case on December 9, 2015 against unknown and unidentified persons involved in the activities of Islamic State in India and other Asian countries.

In its final report, the agency alleged that some Indian men were transferred by the accused to countries such as Syria, Libya and Iraq for terror acts. It also said that the accused, who are currently in judicial custody, were using different internet channels, telephone and one-on-one meetings to further the outfit's ideology.